FTSE 5599 - 8th March

 

Another impressive week by the BULLs. The FTSE was up 5% and closed at 5599. The FTSE has risen 571pts in 20 trading days from the low 5033 (05FEB).

 

FTSE pivot 5577 favours long trades. 5ema(5513)>10ema(5542) is acting as support with Daily move on Monday averaging 50pts and momentum up, Target range would be (5649) which would match the 28th Aug 2008.

 

BEARS will look for the FTSE to fall 32% 1802pts to (3847) over the next 30 days, as happened between 28Aug-10Oct 2008. Target date Friday 16th April.

BULLS will be looking for another 11-17% push up to 6140-6377 over the next 4-5 weeks to emulate the moves seen in 2008 and 2009 when the FTSE rose 24% and 31% repectively in total. Target date Monday 05 April.

 

Strong Bull moves can last 8-9 weeks. In 2009 the 31% move from 3460 (09Mar) to 5521 (07May) lasted 40 days with a 7% pullback after 18 days from 4137(02Apr) to 3876(08Apr). However, the FTSE then fell 26% to 4096 in the next 46days.

 

In 2008, the FTSE rose 24% from 5144 (17Mar) to 6377 (19May) in 41 trading days. However over the next 41 trading days the FTSE proceeded to fall to 20% to 5071

50/50 Daily Rule uses the RSI(71) and 50ema(5323) to indicate the TREND. With the breakout on Thursday 18th Feb above the 50ema and RSI above 50, LONG trades should be in favour. BB 5020-5601

50/50 Weekly Rule favours LONG trades with the RSI(65) and 50ema(5021). BB 5007-5575